is it safe to buy penny stocks today

Penny stocks should not account for more than 10% of your total equity portfolio. This means if your total investment portfolio is Rs 20 lakh and 30% (or Rs 6 lakh) is in stocks,

then the maximum you should put in these high-risk stocks is Rs 60,000. Invest only what you can afford to lose.

Can you get rich playing penny stocks? If an investor is able to find a penny stock with good fundamentals and is able to buy the stock at extremely low valuations, he can make an enormous fortune.

Investment in penny stocks is not very common due to high risks associated. Only investors with a very high risk appetite are advised to do so.

Do penny stocks ever go up? Analysts says that penny stock companies don't often grow up to become big companies, but it does happen.

How much should I invest in penny stocks? Some professionals recommend that you devote no more than 10% of your individual stock holdings to penny stocks. It's also important to understand your risk tolerance.

Generally speaking, the higher your risk tolerance, the more equipped you are to take on the risk that can come with investing in penny stocks.

What happens when a penny stock gets bought out? If the buyout is an all-cash deal, shares of your stock will disappear from your portfolio at some point following the deal's official closing date and be replaced by the cash value of the shares specified in the buyout.